Investing has historically been viewed as a male-dominated sphere, but the landscape is changing dramatically. Women are increasingly taking charge of their financial futures, yet significant gaps remain in terms of participation, confidence, and financial literacy. This article explores the current state of women in investing, the challenges they face, and the steps they can take to empower themselves in the financial realm.

A 2024 report from Fidelity Investments (2024 Women & Investing Study), reveals that 71% of women are now investing in the stock market, marking a notable rise compared to previous decades. This surge mirrors broader societal shifts, such as higher educational achievements and greater workforce participation among women.

Despite increased participation, a confidence gap persists. A 2021 survey by Ellevest (Financial Wellness Survey) found that 57% of women feel that they lack the necessary knowledge to invest confidently. This feeling of inadequacy can stem from various factors, including societal expectations, historical underrepresentation in financial sectors, and a lack of mentorship or role models. This lack of knowledge can lead to missed opportunities and lower returns on investments.

Women tend to be more risk-averse than men when it comes to investing. While this cautious approach can be prudent, it can also result in conservative investment strategies that yield lower returns over time.  A 2016 survey by BlackRock (Global Investor Pulse Survey) found that women are more likely to hold cash or conservative investments rather than stocks, which can hinder long-term wealth accumulation. Women may also have accumulated less wealth due to leaving the work force to care for children and elderly parents.

Women frequently encounter systemic obstacles in the financial industry, such as gender bias and underrepresentation in senior investment positions. Many women feel overlooked or dismissed by their spouse’s financial advisor, which is a troubling issue.  This disregard results in an estimated 70% or more of women choosing to leave their husband’s financial advisor after his passing.

These challenges can lead to a lack of tailored financial advice and investment products that don’t resonate with women’s specific needs and goals.

Women can take steps to empower themselves in the financial realm.

  1. Women should define their financial goals. Whether saving for retirement, a home, education, or travel, having a clear objective can guide investment decisions. A solid, well thought out financial plan helps ensure your savings last throughout your lifetime.

 

  1. Women should Increase their financial literacy. Educational programs, workshops, and resources that teach the fundamentals of investing can empower women to make informed financial decisions. Financial advisors and mentors can also play a vital role in guiding women on their investment journey.

 

  1. Women should invest to gain financial independence. Women often live longer than men. Women on average become a widow at age 59. And 49% of women 65 and older are single according to Pew Research Center. Women need to take charge and accumulate the necessary funds to support themselves during their retirement years.

 

  1. Women should consider a mix of assets, including stocks, bonds, and real estate, aligned with their risk tolerance and financial goals. Diversifying investments helps manage risk while maximizing potential returns.

 

  1. Women should seek financial advisors who understand their unique financial needs and provide personalized guidance. Look for an experienced advisor who prioritizes transparency, is non-gender biased, shows empathy, and has a track record of working with female clients. A 2017 study by Fidelity Investments (Women and Money Survey) shows that when working with a financial advisor, women’s investments often perform as well or better than men’s due to women’s tendency to listen to and follow the advice of their financial advisors. By adhering to sound financial guidance, maintaining long-term focus, managing risks effectively, and fostering strong relationships with their advisors, women can navigate the complexities of investing with greater confidence.

The future looks promising for women in investing. With increased awareness and efforts to ad landscape continues to evolve, the importance of empowering women through financial education and supportive advisory relationships cannot be overstated. By recognizing the factors that contribute to women’s success in investing, both women and their advisors can work together to achieve better financial outcomes and long-term security.

At Suncoast, we take pride in the fact that the majority of our financial advisors are women, setting our firm apart from others in the industry. We are committed to partnering with our female clients to educate, empower, and engage them in achieving financial security while addressing their unique needs.

ABOUT SUNCOAST:

Suncoast Prosperity Advisors, a division of Suncoast Equity Management (a Tampa-based investment management firm established in 1997), is a boutique wealth management firm with offices in Tampa, FL, Sanibel, FL and Highlands, NC. We are a Registered Investment Advisory firm and fiduciary, committed to helping clients achieve financial security through transparent, high-quality investments and a strong partnership. Our experienced team works closely with clients to create personalized strategies that align with their unique financial goals. To learn more, visit SuncoastEquity.com or call your local Prosperity Advisor Robin Cook at 239-387-3977.